Senator Fiona O’Loughlin has called for increased government support for hospitality businesses in the upcoming Budget.
The Kildare South Senator said that hospitality businesses are facing an extremely challenging operating environment due to rising costs, falling food sales, tight margins and the 13.5% VAT rate.
She said: “The cost of doing business is a significant challenge for businesses in the hospitality sector.
“Industry research shows that 77% of hospitality business report a negative outlook for the next 12 months.
“This challenging operating environment is evident with hospitality businesses facing an average increase of 16% in operating costs in the year to date.
“I am calling for the Government to intervene and assist these hospitality businesses, such as cafes, restaurants, small, family-run hotels that deal almost primarily in food and gastropubs that are so vital to our communities.
“Reinstating the 9% VAT rate for food-related hospitality services in the upcoming Budget would be a significant step that would provide vital assistance to the industry and would make our communities more attractive as a destination by enhancing the range and availability of tourism and hospitality services.”